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_ BBA <br />water consultants <br />• <br />BISHOP - BROGDEN ASSOCIATES, INC. <br />August 25, 2010 <br />Murari P. Shrestha, P.E. <br />Director of Engineering and Contracts <br />Western Fuels Association <br />RE: Western Fuels — Nucla Area Mine Sites - Analysis of Impacts to Wells and Water <br />'Rights and Potable Water Requirements and Consumptive Use <br />Dear Murari: <br />This letter report presents a summary of the projected impacts to wells and water rights <br />resulting from the operation of potable water supply wells and dewatering of mine areas <br />associated with Western Fuels Colorado (Western Fuels) New Horizon, New Horizon <br />North and Cyprus Block Mines, generally located near the Town of Nucla, Colorado, as <br />presented in the attached Figure 1. This effort was performed to support Western Fuels' <br />engineering analyses related to the water rights augmentation plan completed by Wayne <br />Schieldt of Water Resource Solutions, LLC. The analyses address potential impacts to <br />neighboring water supply wells resulting from potable well and dewatering pumping and <br />the lagged stream depletions resulting from the operation of the mines and wells. In <br />addition, this letter report presents a summary of the potable water requirements and <br />consumptive use at the existing mine site and projected potable water use and <br />consumption at the future mine facilities. The work benefitted from information in our <br />files, information provided by Western Fuels, available geologic and topographic <br />mapping, information available from the State Engineer's Office and records from the <br />Town of Nucla. <br />Potable Water Demand and Consumptive Use <br />Potable water for the existing New Horizon Mine facilities is supplied by a potable tap <br />from the Town of Nucla. Potable taps will not be available at the New Horizon North and <br />Cyrpus Block locations, and as a result, potable water supply wells will be developed at <br />those two mine sites. We understand that potable water is used for sanitary purposes in <br />the office facilities, limited irrigation adjacent to the office facilities and limited washing <br />of vehicles and equipment. In order to estimate the potable water requirements and <br />consumptive use at those two locations, we researched and reviewed potable water use <br />records for the existing mine facility. We contacted the Town of Nucla and were <br />provided water use records for March, 2005 through February, 2010. We assumed that <br />Michael A. Sayler <br />Christopher J. Sanchez <br />Jeffrey A. Clark <br />Charles E Stanzione <br />Ray Dunn <br />Daniel 0. Niemela <br />Laurel E Stadjuhar <br />www.bbawater.com <br />333 West Hampden Avenue, Suite 1050 Englewood, Colorado 80110 phone 303.806.8952 fax 303.806.8953 <br />